House Study Bill 654 HOUSE FILE BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON SWAIM) A BILL FOR 1 An Act amending provisions of the uniform residential landlord 2 and tenant Act relating to certain definitions, attorney 3 fees, remedies, and late fees, and including applicability 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5427YC (21) 83 md/sc PAG LIN 1 1 Section 1. Section 535.2, subsection 7, Code 2009, is 1 2 amended to read as follows: 1 3 7. This section does not apply to a charge imposed for late 1 4 payment of rent. However, in the case of a residential lease, 1 5 a late payment fee shall not exceed ten dollars a day or forty 1 6 dollars per month. 1 7 Sec. 2. Section 562A.4, Code 2009, is amended by adding the 1 8 following new subsection: 1 9 NEW SUBSECTION. 3. In any action on a rental agreement, 1 10 the court may award reasonable attorney fees to the prevailing 1 11 party consistent with any provisions of the rental agreement 1 12 that are not otherwise prohibited by law. 1 13 Sec. 3. Section 562A.6, Code 2009, is amended by adding the 1 14 following new subsection: 1 15 NEW SUBSECTION. 7A. "Presumption" means that the trier of 1 16 fact must find the existence of the fact presumed unless and 1 17 until evidence is introduced which would support a finding of 1 18 its nonexistence. 1 19 Sec. 4. Section 562A.6, subsection 9, Code 2009, is amended 1 20 to read as follows: 1 21 9. "Rent" means a payment to be made to the landlord under 1 22 the rental agreement, late fees due to the landlord under the . 1 23 rental agreement, and amounts due to the landlord under section 1 24 562A.28 1 25 Sec. 5. Section 562A.9, Code 2009, is amended by adding the 1 26 following new subsection: 1 27 NEW SUBSECTION. 5. A fee for late payment of rent shall not 1 28 exceed twenty dollars per day or eighty dollars per month. In 1 29 the absence of a written rental agreement, or in the case of 1 30 an oral rental agreement, the late fee shall be eighty dollars 1 31 after the fourth day of the month and shall not exceed that 1 32 amount for the month. 1 33 Sec. 6. Section 562A.11, subsection 1, paragraph c, Code 1 34 2009, is amended to read as follows: 1 35 c. Agrees to pay the other party's attorney fees, except ; or 2 1 that a rental agreement may provide that attorney fees may be 2 2 awarded to the prevailing party in any action on the rental 2 3 agreement 2 4 Sec. 7. Section 562A.12, subsection 8, Code 2009, is amended 2 5 by striking the subsection. 2 6 Sec. 8. Section 562A.30, Code 2009, is amended to read as 2 7 follows: 2 8 562A.30 Waiver of landlord's Landlord's right to terminate 2 9 or assert rights. 2 10 1. Acceptance of performance by the tenant that varies from 2 11 the terms of the rental agreement or rules subsequently adopted 2 12 by the landlord constitutes shall not constitute a waiver of 2 13 the landlord's right to terminate the rental agreement for that 2 14 breach, unless otherwise agreed after the breach has occurred. 2 15 2. Failure by the landlord to promptly assert rights under 2 16 this chapter shall not constitute a waiver of such rights or 2 17 a waiver of such rights for any existing or subsequent breach 2 18 of the rental agreement or violation of this chapter by the 2 19 tenant. 2 20 Sec. 9. Section 562A.32, Code 2009, is amended to read as 2 21 follows: 2 22 562A.32 Remedy after termination. 2 23 If the rental agreement is terminated by the landlord or , the landlord may have a claim for possession and and a separate claim for actual damages for breach of 2 24 the tenant 2 25 for rent 2 26 the rental agreement and reasonable attorney's attorney fees 2 27 as provided in section 562A.27. 2 28 Sec. 10. Section 562A.36, subsection 2, Code 2009, is 2 29 amended to read as follows: 2 30 2. If the landlord acts in violation of subsection 1 2 31 of this section, the tenant may recover from the landlord 2 32 the actual damages sustained by the tenant and reasonable 2 33 attorney's attorney fees, and has a defense in action against 2 34 the landlord for possession. In an action by or against 2 35 the tenant, evidence of a good faith complaint within one 3 1 year prior to the alleged act of retaliation creates a 3 2 presumption that the landlord's conduct was in retaliation. 3 3 The presumption does not arise if the tenant made the complaint 3 4 after notice of a proposed rent increase or diminution of 3 5 services. Evidence by the landlord that legitimate costs and 3 6 charges of owning, maintaining, or operating a dwelling unit 3 7 have increased shall be a defense against the presumption of 3 8 retaliation when a rent increase is commensurate with the 3 9 increase in costs and charges. "Presumption" means that the 3 10 trier of fact must find the existence of the fact presumed 3 11 unless and until evidence is introduced which would support a 3 12 finding of its nonexistence. 3 13 Sec. 11. APPLICABILITY. Notwithstanding section 562A.37, 3 14 this Act applies to rental agreements entered into, extended, 3 15 or renewed on or after the effective date of the Act. 3 16 EXPLANATION 3 17 This bill makes several changes relating to the uniform 3 18 residential landlord and tenant Act. 3 19 The bill strikes a provision relating to late payments under 3 20 residential leases from Code section 535.2, and moves it to 3 21 Code section 562A.9. The bill also increases the limitations 3 22 on such late fees from $10 per day or $40 per month to $20 3 23 per day or $80 per month. The bill also provides that in the 3 24 absence of a written rental agreement, or in the case of an 3 25 oral rental agreement, the late fee is $80 after the fourth day 3 26 of the month and shall not exceed that amount for the month. 3 27 The bill moves the definition of "presumption" from Code 3 28 section 562A.26 to the definitions section in the uniform 3 29 residential landlord and tenant Act, Code section 562A.6. The 3 30 bill also amends the definition of "rent" applicable to Code 3 31 chapter 562A to include late fees due to the landlord under the 3 32 rental agreement and amounts due to the landlord under Code 3 33 section 562A.28 for failing to maintain the dwelling. 3 34 The bill amends Code section 562A.11 to allow rental 3 35 agreements to provide for the payment of the prevailing party's 4 1 attorney fees in any action on the rental agreement. 4 2 Current Code section 562A.12, relating to rental deposits, 4 3 specifies that a court may award reasonable attorney fees to 4 4 the prevailing party in any action on a rental agreement. 4 5 The bill strikes this provision and moves it to Code section 4 6 562A.4, relating generally to the administration and 4 7 enforcement of rights under the uniform residential landlord 4 8 and tenant Act. 4 9 The bill amends Code section 562A.30 by providing that 4 10 the acceptance of performance by a tenant that varies from 4 11 the terms of the rental agreement or rules adopted by the 4 12 landlord does not constitute a waiver of the landlord's right 4 13 to terminate the rental agreement for that breach. The bill 4 14 also provides that failure by the landlord to promptly assert 4 15 rights under Code chapter 562A does not constitute a waiver 4 16 of such rights or a waiver of such rights for any existing or 4 17 subsequent breach of the rental agreement or violation by the 4 18 tenant. 4 19 The bill specifies that following termination of a rental 4 20 agreement by the landlord or the tenant, the landlord may have 4 21 a claim for possession and a separate claim for actual damages 4 22 for breach of the rental agreement and reasonable attorney 4 23 fees. 4 24 The bill applies to rental agreements entered into, 4 25 extended, or renewed on or after the effective date of the 4 26 bill. LSB 5427YC (21) 83 md/sc

Joe, are you aware that some of Linn County magistrates are now giving the tenant an evidentiaury hearing in the midst of the eviction court hearing if they complain about the condition of the property. Is this something that we can look forward to being addressed in the near future, possibly yet this session.